Japanese government to review gasoline subsidies
Prime Minister of Japan Sanae Takaichi on Friday instructed industry minister Ryosei Akazawa to review government subsidies to hold down the prices of gasoline and other fuel oil, JIJI Press reported.
In talks with reporters at the prime minister's office earlier that day, Takaichi said some in both the ruling and opposition blocs have urged the government to consider a phased review or an exit strategy for the subsidies due to concerns over the fiscal burden.
"We will consider the matter flexibly, including the amount of subsidies and an exit from the aid program," she noted.
Amid the Middle East turmoil, the government is providing subsidies to oil wholesalers to curb the average retail price of regular gasoline in the nation at about 170 yen per liter. It has considered raising the target price, among other steps, for a possible review of the subsidy program.
The fund balance for the subsidies stood at about 560 billion yen at the end of September. The financial resources are expected to run out in the near future due to soaring crude oil prices.
As reported earlier, marking her first year in office, Japan's Prime Minister Sanae Takaichi emphasized Wednesday that "challenges of the Takaichi cabinet's second year begin today."